Amerisur Resources is exploring for oil and gas in South America, currently in Colombia and later it plans to exploit its licences in Paraguay. It has a new Board of Directors and following a recent Placing at 6p (250m shares) sufficient cash to see through its current drilling plans and carry out some further corporate asset improvement opportunities.

Valuation of Amerisur Resources : 'Rule of Thumb' based on c.800m shares and using 10% DCF on oil at $70/barrel is 0.75p on the sp for every 1m barrels (CHP's share) that is proved in the ground.

Amerisur (formerly Chaco Resources) now has two exploration blocks in Colombia which it is currently evaluating and preparing to drill, one of these in the last quarter of 2007. It has also applied for further blocks in Colombia which are also believed to offer near term production. It also has three substantial areas in Paraguay and is awaiting news on a fourth. The next six months (May-November 2008) should see a steady news flow as it establishes the companys transformation from being an exploration company to becoming a significant oil production company. Set out below are some of the milestones which should produce announcements and have a positive effect on the share price. Any potential reserves are quoted in recoverable oil assets.



Platinillo, Colombia :

100% interest in a field currently assessed at holding 38.1m barrels of light sweet crude oil. Previously this a well flowed at 533 b/d before it was capped.Modern extraction methods may achieve up to double this output/well. Drilling completed for assessment and details of reserve figures and resumption of production daily figures awaited at Dec.2009. (Some guessestimates suggest the field might contain as much as 70m-100m barrels.)

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Tigra/Fenix block

100%% Further 3D seismic is completed; previous drilling has resulted in 30,000 barrels of oil from this block. Other blocks nearby in the Magdalena basin have also produced well. Drilled 11/2009; optimistic RNS (17 leads to follow)but reserve figures awaited

RNS :Expect further news on this block imminently and maybe a JV or other arrangement to speed up the timescale to production



Additional blocks to be announced

New local management team, in particular the CEO, is reputed to have some excellent contacts which will bring some high quality blocks to Amerisur in the coming months.

Curupayty Block, Paraguay :

1.39m hectares in north, close to Bolivia. Two wells previously drilled and both showed oil.

RNS : Expect JV with larger producer.



San Pedro Block, Paraguay :

1m hectares in south-east. Previous drilling showed oil.

RNS : Expect JV with larger producer.



Parana Basin, Paraguay :

Canindeyu block covering 1,789,000 hectares. Bordering Brazil. Oil field on Brazilian side already drilled. Chaco also expect to find oil and, at a deeper level, considerable quantities of gas. Chaco has obtained valuable historic seismic for re-evaluation.

RNS : Presidential Decree received 2/11/06.. Petrobras has announced its intention to increase substantially its effort to exploit Paraguay's hydrocarbons and has announced a farm-in on CDS's adjacent block. Possibility that they or another major will do likewise with Amerisur



Corporate Activity : The new Chairman is believed to have been brought on board to prove some or all of the existing Colombian assets and get these oil producing, arrange a JV on the Paraguayan assets before negotiating a sale of the company as consolidation of explorers in the region continues. An exit sp north of 1.00 over the next 12 months might be a reasonable target provided the drilling programme lives up to expectations, the price of oil remains at/above current levels and an approach is made for the company.

Same here,or its chips for XMAS!!

Today's RNS - yet another underwhelming update. Blue Oar now suggesting that we have to wait until January (presume 2008 - but who knows with this lot!) before news of anything good enough to advance the sp. Take a look at IPL in the meantime - it might pay off.

http://miranda.hemscott.com/ir/chp/pdf/Amerisur_Interim_Results_FINAL_13-12-07.ppt

Confidence!

There is no reason not to have confidence. Plat-2 flow rates are due soon. Upper sands will have to wait until after they have established the mechanics of pumping from the lower chamber and secured the flow.
No doubts the upper sands contain oil but it is not feasible to enter currently for fear of affecting lower chambers contents, if not the whole lot.

I remember when there was little confidence in goo @6p now 13.25.

Amer will come good.

Capetown - I totally agree. I sense that many holders have unrealistic ambitions re the speed at which the exploration process can be managed.

I am advised AMER hoping to be able to put out a further update pre city hols.
Thats all I am able to offer at this moment in time.

Sivad
Good news if positive.

bodeng1-I am hopeful.I am also told that Mr Clark is surprised at the markets reaction to the last RNS.

His aim is to generate a double digit share price by H2.

Sivad
What is H2?

bodeng1

Water without the oxygen!

Seriously, he means the second half of next year, ie H2

Sivad,

GC wants double digit share price by second half of 2008, well I hope we see double digit once Alea and Platanillo 2 flow rates and reserves are disclosed.

Double digit is anything from 10p to 99p, if rates at Alea and Platanillo are anything like what is expected and we have Repsols share then it should be easily double digit when they announce, as I said on the other board if they produced 533 bopd in 1988 they should easily double that with a pump, the choke at the moment must be resticting flow.

Sivad, would like to hear your comments in particually on SP and timescale, lets not forget Fenix which sounds very good and Paraguay.

Sivad,

Or did GC refer to double digit SP H2 2007, that was what I heard.

I have no doubt that GC wants to get to double figures (we all do!) but he shouldn't be that surprised about the last rns. There wasn't enough new info presented. I expect the facts and figures that are required will come but in the meantime the sp isn't going to do much. It's frustrating because AMER is in such a better position now compared to 7 months ago but the company's value has remained the same.

BWD,dont you mean the value has halved?

No capetown. I meant the value of the company is same (roughly) since the 6p share placing of May 24, around the time that AMER was born out of CHP. But I appreciate your point re the sp since earlier in the year.

BWD,
We live in hope!,
ll the best for 2008,et all.

We have had numerous visits from "Wise Men" since the birth in May. What we need now is "Three Kings" all carrying gold ! - Merry christmas

Looks like the markets were hoping for an update before end of year,hence the further fall in SP.